200 units at Reflections project still unsold

May 21, 2013 - PropertyGuru.com.sg

 

 

By Nikki De Guzman:

With around 200 units still left unsold, property agents for Keppel Land’s Reflections project (pictured) are worried that it will be difficult to rent out the remaining homes.

According to CIMB, most owners had cut rents to as low as S$4 psf which amounts to a 2.4 percent yield at current levels. This has since stabilised to S$5 psf. Comparatively, implied gross yields for the nearby Corals at Keppel Bay by the same developer stood at 3.2 percent.

According to a Singapore Business Review report, agents “continue to point to low deposit rates as a pitch for the relative attraction of its rental yields”.

“Not surprisingly, most buyers at the Corals went for the smaller one- to two-bedders. Take-up for three-bedders and above priced at S$2.7 million to S$10 million per unit was lower. Investors made up the bulk of the initial take-up, with many concurrently owning units at Caribbean and Reflections,” it added.

Agents revealed that many of the units sold at Reflections remain vacant. Physical prices are staying firm as owners have strong holding power.